Yes, gaming approved the art work. I can name a number of chips that were destroyed after they were produced. 2 come to mind real quick.

Atlantis Reno had a bowling chip that said:
"You have to have big balls to bowl in Reno"
I actually had one of these chips in my hand. I was promised to get my own, but BJ threw a hissy fit.
The other was that HR chip about the drug movie, forgot the name.
There have been others. Gaming must not take a hard look at art work.